Attitudes to Milk Price Cuts - UK Consumer Insight

Quenching Consumers’ Thirst for Low Prices: 60% Welcome Milk Price Cuts

© Harris Interactive

British Public reaction to recent Milk Price Cuts

© Harris Interactive 2

This is Good News !

What about the farmers?!

Supermarkets should lower

prices on other products ahead of milk

What about the cows?

£1 is too low a price for 4

pints

Is the Quality OK?

58%54% 54%

41%

29%24%

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

5%

10%

24%

31%

27%


Over half of consumers (58%) favourably receive recent milk price cuts. Younger age groups 16-44yrs (64%) & households with children (65%) are more inclined to agree.

On the other hand, those aged +55yrs (52%) are least likely to see this as positive news.

Q. This is good news – supermarkets should do everything they can to keep prices lowBase: All respondents: 2,049

Good news! Supermarkets should do all they can to keep prices low

58% ‘agree’

14% ‘disagree’


Q. This is good news – supermarkets should do everything they can to keep prices lowBase: All respondents: 2,049

Seen as Adding Financial Value for Consumers

Seen as Supporting Nutrition & Health

Seen as About Time the Major Grocers Aligned their Prices to

Cheaper Retailers

“Any reductions on the cost of items that 99% of the population buy is good.”

“Milk has excellent nutritional value, especially for children so it will enable poorer families to buy it.”

“Asda have been charging £1 for quite a while so I am surprised it took the others so long.”

“It’s a small step but very helpful for those of us that are struggling financially.”

“Price cut on milk would promote milk consumption and good for a healthy nation.”

“I have been paying £1 for 4 pints for over a year from Iceland.”

“As an essential product people buy regularly, this is a very welcome thing.”

“Basic food necessities should be kept to a minimum to ensure people are able to get a balanced and healthy diet.”

“Discounters have always sold at this price.”

“ I am happy to get it as cheap as I can.”“Milk is essential for children’s growth and mainly bought in quantity because of family reasons.”

“This is only what Lidl has done for year.”

“It’s great, helps cut the cost of the weekly bill.” “It is a vital product for health.” “If Poundland can sell it for £1, why shouldn’t the supermarkets?”

Key themes among consumers who favourably welcome the price cuts

Strongly disagree

Disagree


Agree

Strongly agree

7%

12%

24%

30%

24%


54% ‘agree’

18% ‘disagree’

54% worry about the consequences of these price cuts on British farmers This is particularly so amongst those aged +55 (65%), in social grade AB (62%) & by households without

children (59%).

Q. I worry about what this is doing to British farmersBase: All respondents: 2,049

I worry about what this is doing to British farmers


I worry about what this is doing to British farmersBase: All respondents: 2,049

Seen as Benefiting Supermarkets to the detriment of Farmers

Welcome the Price Cuts as Long as the Farmers Welfare Isn’t Threatened

Scepticism Regarding the Consequences on Farmers

“The supermarkets will still be making a large profit, otherwise they wouldn’t drop the price so easily.”

“As long as farmers are well-paid, pricing is fine.”

“It’s grossly unfair for farmers who will struggle even more to make a living.”

“Supermarkets ‘greedy’.” “Would be willing to pay more if farmers are making inadequate margins.”

“More pressure on hard-pressed farmers.”

“The price would not have been lowered if the supermarkets were going to be losing money on it, would it?”

“This is OK as long as the supermarkets bear the full cost of the price cut as a ‘loss leader’ and not penalise farmers.”

“They do not care or ever have cared about British farmers.”

“Deliberate loss by supermarkets to get you in store.”

“As long as it doesn’t put strain on farmers.” “it’s the dairy farmers that lose out ultimately.”

“The cut should be to the supermarkets’ profits, not the farmers’.”

“As long as the price paid to the farmers has not decreased, I think it is a good thing.”

“According to the papers/supermarkets – the farmers price will not drop – but is this true? Needs to be checked.”

Key themes among consumers who worry about farmers’ welfare

Strongly disagree

Disagree


Agree

Strongly agree

4%

7%

33%

33%

21%


54% ‘agree’

11% ‘disagree’

Over a half of consumers (54%) believe that supermarkets should focus on lowering prices of other products ahead of milk.

This opinion is even stronger amongst those aged +55yrs (61%) and in social grade C2 (63%)

Q. Supermarkets should focus on lowering prices on other products ahead of milkBase: All respondents: 2,049

Grocers should focus on lowering prices on other products ahead of milk


.Supermarkets should focus on lowering prices on other products ahead of milkBase: All respondents: 2,049

Don’t see Milk as a priority for price reductions

Hope to See Other Products Reduced in the Future

“I would rather see cuts on other products than milk.” “Hopefully, there will be similar cuts for other products.”

“I never hear anyone complaining that milk is too expensive – while many other products get more expensive every month and people do feel the pinch. Farmers are already practically giving away their milk.”

“It should be extended to other products.”

“I think the supermarkets should cut the price of other products and not milk. British farmers are being squeezed too much.”

“They need to get real instead of just reducing milk. What about the other family essentials!!”

“Other products should be first consideration.” “It’s a good move but how about them dropping prices on lots of other items. They are robbing us all blind.”

Key themes among those who wish to see price of other products reduced

Strongly disagree

Disagree


Agree

Strongly agree

9%

18%

28%

15%

41%


41% ‘agree’

27% ‘disagree’

41% of people worry about the welfare of cows. Those most inclined to be worried are women (44%) and those in social grade AB (46%).

Q. This makes me worry about the dairy cows’ standard of welfareBase: All respondents: 2,049

This makes me worry about the dairy cows’ standard of welfare

http://www.iconarchive.com/show/agriculture-icons-by-aha-soft/cow-icon.html

Strongly disagree

Disagree


Agree

Strongly agree

17%

23%

27%

18%

11%


29% ‘agree’

41% ‘disagree’

Just short of a third of consumers (29%) agree that £1 is too low a price for 4 pints of milk Respondents in agreement are most likely to be over +55yrs (41%), in social grade AB (38%) and in

households without children (32%).

Q. I think this is too low a price for 4 pints of milkBase: All respondents: 2,049

I think this is too low a price for 4 pints of milk

Strongly disagree

Disagree


Agree

Strongly agree

16%

30%

27%

16%

7%


Whilst a quarter (24%) of consumers question the quality of the product on sale, close to half (47%) do not consider the price cut as affecting quality.

Disparities between the younger and older categories are once again visible with younger respondents (36%) much more inclined to worry about the possible effect on quality.

24% ‘agree’

47% ‘disagree’

Q. This makes me question the quality of the product on saleBase: All respondents: 2,049

This makes me question the quality of the product on sale

• We conducted an online omnibus survey with 2,049 adults aged 16+ across England, Scotland , and Wales between 11th and 17th March 2014.

• The survey took place using the Harris Interactive online panel,

.....the Harris Poll.

• The Harris Poll Global Omnibus consists of members of the

general public who have opted in and voluntarily agreed to participate

in online research studies. Through careful recruitment and management, we are able to rapidly survey large numbers of the general population and accurately represent the views of the nation.

• We have over 100,000 active panellists in the UK and our panel is used solely for market and opinion research. Members are contacted at random and invited to take part in a survey.

Approach and Panel


Omnibus Audience – a representative sample

12%

9%

4%

9%

9%16%

9%

5%

14%12%


• The results of the study were weighted to best reflect the size and shape of the population of the UK

• This means that the results in this report reflect an audience that is as true as possible of the population with the same age, gender and regional profile. The audience profile is detailed below.

• Of course not everyone in GB has internet access, but online panel research results are considered to be extremely accurate. In fact, according to the British Polling Council, Harris Interactive was the most accurate online polling company during the last UK elections in 2010: http://www.britishpollingcouncil.org/press100508.html

N/A

Gender Age

Region

48% 52%

12%

17%

19%17%

36%17 - 24 25 - 34 35 - 4445 - 5455+

http://www.britishpollingcouncil.org/press100508.html

Lucia Juliano | Head of Consumer & Retail Research | [email protected] 89 39 22 51 | 0161 242 1365 | 0161 242 1360

For Further Information please contact :


mailto:[email protected]

Attitudes to Milk Price Cuts - UK Consumer Insight

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